Reforms boost LNG's prospects: China gas market long-term outlook H2 2016
The recovery in China’s gas market is restoring industry confidence. Accelerated reforms pushing down end-user prices, clearer policies aimed at supporting gas demand, and recovery in oil prices will combine to improve the demand outlook through the medium and long term. Domestic unconventional supply faces serious challenges – so won’t ramp up significantly through the medium term. Central Asian piped imports will continue struggling economically in their major markets along the coast. LNG will be the winner: its delivered cost advantage is sharpening as pricing liberalisation moves on, and emerging buyers are pushing hard to create LNG demand. This update provides our latest long-term outlook for China gas demand and supply.